TOP 10 Learning Questions for

Chapter 08: Identifying Market Segments and

Targets

Arvin YabutDecember 15, 2011

1. Which of the following best describes what a market segment is?

A. A market segment consists of different groups of customers who share a similar set of needs and wants

B. A market segment consists of a group of customers who share a similar set of needs and wants

C. A market segment consists of a group of customers who share different sets of needs and wants

D. A market segment is a group of people who have a defined range of standards of living.

E. A market segment consists of different groups of customers who share different sets of needs and wants.

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Book Definition

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Source: Kotler’s Marketing Book – 13th edition

Page 248 A market segment consists of a group of customers who

share a similar set of needs and wants.

Book Definition

4

Source: Kotler’s Marketing Book – 13th edition

Page 248 A market segment consists of a group of customers who

share a similar set of needs and wants. Keywords:

Group of customers Similar set Needs and wants

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1. Which of the following best describes what a market segment is?

A. A market segment consists of different groups of customers who share a similar set of needs and wants

B. A market segment consists of a group of customers who share a similar set of needs and wants

C. A market segment consists of a group of customers who share different sets of needs and wants

D. A market segment is a group of people who have a defined range of standards of living.

E. A market segment consists of different groups of customers who share different sets of needs and wants.

2. Which of the following is not a level of micromarketing?

A. Individual MarketingB. Segment MarketingC. Criterion MarketingD. Local MarketingE. Niche Marketing

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4 Levels of Micromarketing

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4 Levels of Micromarketing

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Process of elimination tells usthat there’s no such thing as “Criterion Marketing”

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2. Which of the following is not a level of micromarketing?

A. Individual MarketingB. Segment MarketingC. Criterion MarketingD. Local MarketingE. Niche Marketing

3. In psychometric segmentation, which group with higher resources tend to seek durability, functionality, and value in products?

A. ThinkersB. ExperiencerC. ScholarsD. InnovatorsE. Achievers

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VALS Framework

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VALS Framework

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Innovators: reflect cultivated tastes for relatively upscale products & services Thinkers: seek durability, functionality, and value in products Achievers: favor premium products for success Experiencer: spend for fashion, entertainment, and socializing Scholars: does not exist; trick choice

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A. ThinkersB. ExperiencerC. ScholarsD. InnovatorsE. Achievers

3. In psychometric segmentation, which group with higher resources tend to seek durability, functionality, and value in products?

4. What is the loyalty status of consumers who are loyal to two or three brands?

A. Shifting loyalsB. SwitchersC. Split loyalsD. Hard-core loyalsE. Major loyals

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Brand Loyalty

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Hard-core Loyals

Split LoyalsShifting Loyals

Switchers

Brand Loyalty

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Hard-core Loyals - who buy the brand all the time. Split Loyals - loyal to two or three brands. Shifting Loyals - moving from one brand to another. Switchers - with no loyalty

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4. What is the loyalty status of consumers who are loyal to two or three brands?

A. Shifting loyalsB. SwitchersC. Split loyalsD. Hard-core loyalsE. Major loyals

5. In evaluating and selecting the market segments, which of the following refers to serving many needs of a particular customer group?

A. Single-Segment ConcentrationB. Selective SpecializationC. Product SpecializationD. Market SpecializationE. Full-Market Coverage

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Book Definition

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Source: Kotler’s Marketing Book – 13th edition

Page 268 Evaluating and Selecting the Market

Segments

Book Definition

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Market Specialization

The firm concentrates on serving many needs of a particular customer group.

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5. In evaluating and selecting the market segments, which of the following refers to serving many needs of a particular customer group?

A. Single-Segment ConcentrationB. Selective SpecializationC. Product SpecializationD. Market SpecializationE. Full-Market Coverage

6. What approach can be done to broaden the customer base in case of oversegmenting the market?

A. MegamarketingB. ResegmentationC. Segment ReviewD. CustomerizationE. Countersegmentation

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Book Definition

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Source: Kotler’s Marketing Book – 13th edition

Page 270 Evaluating and Selecting the Market

Segments

Book Definition

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Companies should be cautious about oversegmenting their markets. They may

wantto turn to countersegmentation to

broaden the customer base.

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6. What approach can be done to broaden the customer base in case of oversegmenting the market?

A. MegamarketingB. ResegmentationC. Segment ReviewD. CustomerizationE. Countersegmentation

7. What are the three activities for target marketing?

A. Market Targeting, Market Segmentation, Market Niching

B. Market Positioning, Market Segmentation, Market Localization

C. Market Segmentation, Market Penetration, Market Positioning

D. Market Customization, Market Segmentation, Market Targeting

E. Market Positioning, Market Targeting, Market Segmentation

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Book Definition

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Book Definition

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S.T.P.SegmentationTargetingPositioning

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7. What are the three activities for target marketing?

A. Market Targeting, Market Segmentation, Market Niching

B. Market Positioning, Market Segmentation, Market Localization

C. Market Segmentation, Market Penetration, Market Positioning

D. Market Customization, Market Segmentation, Market Targeting

E. Market Positioning, Market Targeting, Market Segmentation

8. What is the strategic coordination of economic, psychological, political, and public relations skills, to gain the cooperation of a number of parties in order to enter or operate in a given market.

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A. MegamarketingB. ResegmentationC. Segment ReviewD. CustomerizationE. Countersegmentation

External environment + Marketing Variables

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Manage these elements!

External environment + Marketing Variables

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Megamarketing• economic• psychological• political• public relations

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A. MegamarketingB. ResegmentationC. Segment ReviewD. CustomerizationE. Countersegmentation

8. What is the strategic coordination of economic, psychological, political, and public relations skills, to gain the cooperation of a number of parties in order to enter or operate in a given market.

9. What type of preference segment results when natural market segments emerge from groups of consumers with shared preferences?

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A. Homogeneous preferencesB. Diffused preferencesC. Clustered preferencesD. Heterogeneous preferencesE. None of the above

Book Definition

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Source: Kotler’s Marketing Book – 13th edition

Page 249 Market Segmentation

Book Definition

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Homogenous Preference: when all consumers have the same preferences Diffused Preference: vary greatly in their preferences Clustered Preference: when natural market segments

emergefrom groups of consumers with shared preferences

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9. What type of preference segment results when natural market segments emerge from groups of consumers with shared preferences?

A. Homogeneous preferencesB. Diffused preferencesC. Clustered preferencesD. Heterogeneous preferencesE. None of the above

10. The following effective segmentation criteria would be measureable, substantial, accessible, differentiable, and __________.

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A. AttainableB. ActionableC. ArguableD. AchievableE. None of the above

5-Key Criteria

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5-Key Criteria

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“Actionable” is the last criterion!

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10. The following effective segmentation criteria would be measureable, substantial, accessible, differentiable, and __________.

A. AttainableB. ActionableC. ArguableD. AchievableE. None of the above

TOP 10 Learning Questions for

Chapter 08: Identifying Market Segments and

Targets

Arvin YabutDecember 15, 2011